TREASURY DEPARTMENT, Washington, December 3, 1907. DEAR SIR: Further referring to recent correspondence with you, regarding difficulties in the payment of internal-revenue taxes, and the embarrassment of banks in making deposits of their excess balances with the subtreasuries, you are advised that the Department has made such arrangements as will cause, it is hoped, a complete resumption of the methods of exchange formerly followed in connection with these matters. You are at liberty to communicate this information to those interested. J. H. EDWARDS, Very truly, yours, Mr. C. C. WATKINS, Cashier National Deposit Bank, Owensboro, Ky. Assistant Secretary. 2. THE CITIZENS NATIONAL BANK, Louisville, Ky., November 9, 1907. DEAR SIR: On November 4, 1907, we sent to the assistant treasurer of the United States, New York City, this bank's check on the National Park Bank, New York, for $20,000, account transfer of funds. The check was made against an actual balance to this bank's credit with the National Park Bank, but was refused by it because the assistant treasurer insisted on its payment in currency only. An effort made November 6 to make transfer of $10,000 through this bank's Philadelphia correspondent met a like fate. Our correspondents at New Orleans, St. Louis, and Chicago are unable to deposit currency for us or to pay currency on checks made on them for transfers. Existing conditions make it impossible for them to do it. The collectors' deposits are made up almost wholly of checks and our only means of remitting for excess balances is by check on one of the reserve centers. We have readily accepted these checks, because to refuse them would be to block the Government business, and it is our earnest desire to facilitate its transactions in every way we can. The collector deposits daily with one of the six depositary banks from $40,000 to $75,000, and even if this deposit were in currency I am persuaded the withdrawal of so much currency from Louisville would be seriously felt by its business interests. We give you these facts in order that you may remedy the trouble as may appear to you best. Yours, truly, Hon. GEORGE B. CORTELYOU, Secretary of the Treasury, Washington, D. C. H. C. RODES, President. TREASURY DEPARTMENT, Washington, December 2, 1907. DEAR SIR: Further referring to recent correspondence with you regarding difficulties in the payment of internal revenue and other Government taxes, and the embarrassment of banks in making deposits of their excess balances with the subtreasuries, you are advised that the Department has made such arrangement as will cause, it is hoped, a complete resumption of the methods of exchange formerly followed in connection with these matters. You are at liberty to communicate this information to those interested. SOUTHERN NATIONAL BANK, Louisville, Ky., November 9, 1907. SIR: On November 7 the collector of internal revenue deposited in this bank $55,491.42, and as our allotment of deposit was complete, we issued our draft for the same amount on the Hanover National Bank, New York, payable to the assistant treasurer of the United States, and forwarded it to him to be credited on our account as a transfer of Government funds, this being the usual course for these transactions. On this day we received from the Hanover National Bank a telegram, reading as follows: "Check 1852, order assisant treasurer, presented. Currency at 3 per cent premium. We can only pay providing you remit currency or instruct us purchase here. Answer." To which we replied by wire, as follows: "Have taken matter of transfer up with Secretary of Treasury. Do not purchase currency." We would respectfully state, in this connection, that the deposit received by us contained but a few hundred dollars in cash, the majority being made up of certified checks on banks in this city, which had been tendered in payment of taxes and the purchase of stamps. This is in accordance with the custom which has existed in this district for a long time. We have been in the habit in the past of making our transfer for deposits, in excess of the amount allowed us, in the various cities where subtreasuries are located. These avenues have all been closed during the past two weeks by the unwillingness of the banks located therein to deposit currency with the asistant treasurer, as has been the custom in the past, with the exception of New York City, where we have always made our transfers by our own draft on our correspondent, to the order of the assistant treasurer. If this method is discontinued, we see no way to make these transfers, as we are unable to ship the large amounts in currency from Louisville to cover the deposits of the collector, which average in amount somewhat over $50,000 per day. Nor do we see how it will be possible for the distillers and tobacco manufacturers to obtain currency to make their payments at the collector's office. And even if they were so enabled to do we would be very loath to see that amount shipped from our city daily to be locked up in subtreasury vaults. The draft on the Hanover National Bank, which was tendered to the assistant treasurer at New York, represents actual funds to our credit in that bank, and is the usual course for such transfers to be made. We consequently have left this matter open until we hear further from you. We remain, respectfully, yours, JAMES S. ESCOTT, President. Hon. SECRETARY OF THE TREASURY, Washington, D. C. SOUTHERN NATIONAL BANK, Louisville, Ky., November 11, 1907. SIR: Following up our letter of November 9 regarding the transfer of internalrevenue deposits, we beg leave to inclose a copy of a letter from our New York correspondent, the Hanover National Bank, which gives additional information on the subject, and explains the embarrassing position in which we are placed with this valued correspondent. Under existing rates this deposit of $55,000 would entail upon us, should we be required to furnish the currency, an expense of nearly $1,700, which we are satisfied you will agree with us would be a burden which we ought not to be called upon to assume. At the same time, should we decline to comply with the request of our correspondent bank, it would leave them in a position which would also be manifestly unfair. We trust, therefore, that you can suggest a solution which would relieve this urgent case, in which not only ourselves but the other depositary banks of this city would be placed. We remain, very truly, yours, JAMES S. ESCOTT, President. Hon. SECRETARY OF THE TREASURY, Washington, D. C. NEW YORK, November 9, 1907. DEAR SIR Referring to our telegraphic correspondence in regard to your check on us in favor of the Treasury Department, we have your dispatch saying that you were taking the matter up with the Secretary and requesting us not to purchase currency. Your telegram did not come to hand until 2 o'clock, and in the meantime we had to pay your check with the actual cash, and under these circumstances we feel that you should cover such transfer by shipping us currency for the purpose, or else have us buy the currency in the market here for your account. We, of course, want to be of all the service we can to you here, but all drafts through the subtreasury have to be met with cash. Since the 1st of the month we have paid out over $100,000 in currency for your account, and with the prevailing premium of 3 per cent on cash you will appreciate that this is manifestly unjust to us. Yours, truly, HENRY THIEMANN, Esq., ELMER E. WHITTAKER, Cashier Hanover National Bank. Cashier Southern National Bank, Louisville, Ky. TREASURY DEPARTMENT, Washington, December 2, 1907. DEAR SIR: Further referring to recent correspondence with you regarding difficulties in the payment of internal-revenue and other Government taxes, and the embarrassment of banks in making deposits of their excess balances with the subtreasuries, you are advised that the Department has made such arrangements as will cause, it is hoped, a complete resumption of the methods of exchange formerly followed in connection with these matters. You are at liberty to communicate this information to those interested. Very truly, yours, Mr. JAMES S. ESCOTT, J. H. EDWARDS, Assistant Secretary. President Southern National Bank, Louisville, Ky. 4. UNITED STATES DEPOSITORY, Salt Lake City, Wednesday, November 6, 1907. – SIR: Both our New York correspondent, the National City Bank, and our correspondent in San Francisco, the Anglo-California Bank (Limited), decline to accept our drafts on them and make deposit of funds in the subtreasuries of those cities to cover our daily excess Government deposit. What shall we do? Nearly all the money we receive from the post-office and other Government officials here is in the form of checks, and we have no cash here at this time that we can remit to you. It is a hard struggle to keep enough cash in our vaults to keep business going. We can not ship away what little money we have and receive in its stead only checks. Would you accept from us temporarily as security for these funds deposited with us 100,000 United States twos, 1930, that we have on deposit at the National City Bank of New York, and 50.000 United States fours, 1925? If you would do this for the present and allow the deposit to remain here to the extent of our security, perhaps by the time we had accumulated that amount the situation will have cleared up so that we could remit funds to cover. Please wire answer. 5. THE OLD STATE NATIONAL Bank, DEAR SIR: We inclose letter from our correspondent, the National Park Bank, New York, advising us that they will not take our checks payable to the order of the assistant treasurer of the United States, drawn on account of transfer of funds. The deposits for which these checks are drawn come to us largely in checks and with very little currency. We will confer with the local internal-revenue collector and postmaster, and see if these deposits can be made in currency, which we fear will be a hardship on our people at this time. We are ready to remit for these amounts in such manner as you may direct and to such city as you will prefer. Kindly advise us how we shall make the remittances and to which one of the cities would be your preference, and oblige, Yours, respectfully, SECRETARY OF THE TREASURY, HENRY REIS, Cashier. Washington, D. C. [Inclosure.] THE NATIONAL PARK BANK OF NEW YORK, GENTLEMEN: We notice that we had to-day presented to us check drawn on us by you to the order of the assistant treasurer of the United States for $3,442, and that we frequently have such items presented. Inasmuch as these items at present have to be paid by us in cash to the assistant treasurer, we must ask that, for the present, you discontinue drawing such items for transfer of funds, as the aggregate of same reaches a very large amount. Trusting you will cooperate with us in this matter, which will relieve the drain of currency from banks in this city, we are, Yours, very truly, OLD STATE NATIONAL BANK, M. H. EWER, Cashier. Evansville, Ind. TREASURY DEPARTMENT, Washington, December 3, 1907. DEAR SIR: Further referring to recent correspondence with you regarding difficulties in the payment of internal-revenue taxes, and the embarrassment of banks in making deposits of their excess balances with the subtreasuries, you are advised that the Department has made such arrangements as will cause, it is hoped, a complete resumption of the methods of exchange formerly followed in connection with these matters. You are at liberty to communicate this information to those interested. J. H. EDWARDS, Very truly, yours, Mr. HENRY REIS, Cashier Old State National Bank, Evansville, Ind. 6. Assistant Secretary. PATERSON, N. J., November 13, 1907. The custom of assistant treasurer at New York to require coin from New York banks in payment of transfer of funds from country points is working great hardships. We recommend to your favorable consideration the certifying by New York banks of such remittances to be held by assistant treasurer pending present unsettled currency conditions. The SECRETARY OF THE TREASURY, Washington, D. C. EDWARD T. BEALE, President. TREASURY DEPARTMENT, Washington, December 3, 1907. DEAR SIR: Further referring to recent correspondence with you regarding difficulties in the payment of internal-revenue and other Government taxes, and the embarrassment of banks in making deposits of their excess balances with the subtreasuries, you are advised that the Department has made such arrangements as will cause, it is hoped, a complete resumption of the methods of exchange formerly followed in connection with these matters. You are at liberty to communicate this information to those interested. Very truly, yours, Mr. EDWARD T. BEALE, President, Paterson, N. J. J. H. EDWards, Assistant Secretary. 7. THE UNITED STATES NATIONAL BANK, DEAR SIR: As advised to you in our letter of the 2d instant, the San Francisco banks having declined to make deposits with the assistant treasurer for our account, we have been remitting to the assistant treasurer at New York for excess of Government moneys on deposit in this bank. We are to-day in receipt of telegram from the National City Bank, requesting us not to draw any more drafts in favor of the assistant treasurer at New York. We will hold any further deposits that we may have in excess of the amount allowed us awaiting your further instructions. Very truly, yours, R. W. SCHMEER, Cashier. Washington, D. C. The SECRETARY OF THE TREASURY, TREASURY DEPARTMENT, Washington, December 2, 1907. DEAR SIR: Further referring to recent correspondence with you regarding difficulties in the payment of internal-revenue and other Government taxes, and the embarrassment of banks in making deposits of their excess balances with the subtreasuries, you are advised that the Department has made such arrangements as will cause, it is hoped, a complete resumption of the methods of exchange formerly followed in connection with these matters. You are at liberty to communicate this information to those interested. MY DEAR SIR: Inclosed we beg to hand you a telegram just received from the National City Bank of New York; we also beg to inclose you a letter from the Whitney-Central National Bank of New Orleans, both instructing us regarding drafts which we have been accustomed to sending the assistant treasurer at New York or New Orleans. Will you kindly suggest to us what action to take in the premises? Could we send our New York or New Orleans to the assistant treasurer of some other points? We regret complication has arisen, and trusting your instructions to us will not be embarrassing, and assuring you of our desire to serve you faithfully and satisfactorily, we beg to remain, with kind regards, Very respectfully, MICHAEL J. MCDERMOTT, President. The TREASURER OF THE UNITED STATES, Washington, D. C. |